by Alexei Andreev Dec 13 2016

The practice of giving microloans, which are small loans that are issued by individuals.

Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. Often, microloans are given to people in Third World countries, where traditional financing is not available, to help them start small businesses. Lenders receive interest on their loans and repayment of principal once the loan has matured.